NasdaqGS:EVLO

Stock Analysis Report

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Executive Summary

Evelo Biosciences, Inc., a biotechnology company, focuses on the development of monocolonal microbials for the treatment of inflammatory diseases and cancer.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Evelo Biosciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EVLO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.4%

EVLO

-3.9%

US Biotechs

1.3%

US Market


1 Year Return

-31.6%

EVLO

27.2%

US Biotechs

14.9%

US Market

Return vs Industry: EVLO underperformed the US Biotechs industry which returned 24.5% over the past year.

Return vs Market: EVLO underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

EVLOIndustryMarket
7 Day-10.4%-3.9%1.3%
30 Day-24.3%-3.5%4.7%
90 Day-21.4%7.4%17.1%
1 Year-31.6%-31.6%28.5%27.2%17.3%14.9%
3 Yearn/a26.2%22.0%38.9%29.9%
5 Yearn/a-4.2%-9.7%71.3%52.8%

Price Volatility Vs. Market

How volatile is Evelo Biosciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evelo Biosciences undervalued compared to its fair value and its price relative to the market?

2.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EVLO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EVLO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EVLO is unprofitable, so we can't compare its PE Ratio to the US Biotechs industry average.

PE vs Market: EVLO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EVLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EVLO is good value based on its PB Ratio (2.5x) compared to the US Biotechs industry average (3.3x).


Next Steps

Future Growth

How is Evelo Biosciences forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVLO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EVLO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EVLO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if EVLO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if EVLO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVLO is forecast to be unprofitable in 3 years.


Next Steps

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Evelo Biosciences performed over the past 5 years?

-37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVLO is currently unprofitable.

Growing Profit Margin: EVLO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EVLO is unprofitable, and losses have increased over the past 5 years at a rate of 37% per year.

Accelerating Growth: Unable to compare EVLO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EVLO is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-22.5%).


Return on Equity

High ROE: EVLO has a negative Return on Equity (-127.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is Evelo Biosciences's financial position?


Financial Position Analysis

Short Term Liabilities: EVLO's short term assets ($92.7M) exceed its short term liabilities ($13.6M).

Long Term Liabilities: EVLO's short term assets ($92.7M) exceed its long term liabilities ($31.1M).


Debt to Equity History and Analysis

Debt Level: EVLO's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EVLO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EVLO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EVLO has less than a year of cash runway if free cash flow continues to reduce at historical rates of 40.6% each year


Next Steps

Dividend

What is Evelo Biosciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EVLO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EVLO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EVLO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EVLO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EVLO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Simba Gill (55 yo)

4.92yrs

Tenure

US$2,802,000

Compensation

Dr. Balkrishan Gill, also known as Simba, Ph.D. served as Independent Non-Executive Director of Realm Therapeutics plc since 2019 until July 31, 2019. He serves as Executive Chair and Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Simba's total compensation ($USD2.80M) is above average for companies of similar size in the US market ($USD1.34M).

Compensation vs Earnings: Simba's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Balkrishan Gill
President4.92yrsUS$2.80m0.084%
$ 147.1k
Mark Bodmer
Chief Scientific Officer and President of Research & Development4.33yrsUS$1.49m0.40%
$ 700.6k
Xiaoli Liu
Controller & Principal Accounting Officer0.50yrno data0.0065%
$ 11.4k
Chun Zhang
Head of Technical Operations0.50yrno datano data
Stefan Riley
Head of Investor Relationsno datano datano data
Daniel Char
General Counsel & Secretary1.83yrsno datano data
Jessica Cotrone
VP & Head of Communicationsno datano datano data
Andrea Itano
Head of Research0.50yrno datano data
Duncan McHale
Chief Medical Officer2.5yrsUS$2.29mno data
Stu Abel
Global Head of Regulatory Affairs & EU Head of Clinical Development0.50yrno datano data
Neil Graham
Chief Development Officer0.33yrno datano data

0.5yrs

Average Tenure

55yo

Average Age

Experienced Management: EVLO's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Balkrishan Gill
President4.92yrsUS$2.80m0.084%
$ 147.1k
David Perry
Independent Director4.17yrsUS$110.86kno data
Theodose Melas-Kyriazi
Independent Director3.5yrsUS$129.70kno data
David Epstein
Independent Chairman0.92yrUS$1.02mno data
Nancy Simonian
Independent Director2.33yrsUS$114.67kno data
Ara Darzi
Independent Director2.5yrsUS$114.67kno data
Juan Andres
Director0.67yrUS$93.42kno data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: EVLO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44%.


Top Shareholders

Company Information

Evelo Biosciences, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evelo Biosciences, Inc.
  • Ticker: EVLO
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$175.781m
  • Shares outstanding: 46.14m
  • Website: https://www.evelobio.com

Number of Employees


Location

  • Evelo Biosciences, Inc.
  • 620 Memorial Drive
  • Suite 200 West
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVLONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2018

Biography

Evelo Biosciences, Inc., a biotechnology company, focuses on the development of monocolonal microbials for the treatment of inflammatory diseases and cancer. It is involved in developing EDP1066 and EDP181 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:15
End of Day Share Price2020/07/31 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.